Purchase Promissory Note Template for Saudi Arabia

A Purchase Promissory Note is commonly used in Saudi Arabian commercial transactions as a security instrument for deferred payment obligations arising from purchase transactions. The document represents a formal, written promise to pay a specific sum of money at a future date, issued by a buyer (maker) to a seller (beneficiary). This type of promissory note must strictly comply with Saudi Arabia's Commercial Papers Regulation and Sharia law principles, which prohibit interest (riba) and require the transaction to be based on legitimate commercial activities. The document serves as a negotiable instrument that can be transferred or used as security, making it a valuable tool in Saudi Arabian business transactions. It must contain certain mandatory elements to be valid and enforceable under Saudi law, including specific dates, amounts, and parties' details.

1. Date and Place of Issuance: Clear statement of when and where the promissory note was issued, essential for validity under Saudi law

2. Unconditional Promise to Pay: Clear and unambiguous promise to pay a specified sum, using the words 'I/We promise to pay'

3. Specified Payment Amount: The exact amount payable in both numbers and words (in Saudi Riyals)

4. Beneficiary Details: Full legal name and details of the party to whom or to whose order the payment is to be made

5. Payment Due Date: Clear specification of when the payment is due (must be a definite date)

6. Place of Payment: Specification of where the payment is to be made

7. Maker's Details and Signature: Full legal name, address, and signature of the party making the promise to pay